Upstream Analytical Policy Work: Update Ms. Xueman Wang PMR Secretariat Tenth Meeting of the Partnership Assembly Santiago, Chile November 3-4, 2014
Background At PA 9, an envelope of US$5 million for FY15 (until June 30, 2015) was allocated for Upstream Analytical Work to Support Development of Policy Options for Mid- and Long-term Mitigation Objectives with the understanding that the scope of the world would cover upstream policy work, which should also assist in the analysis of carbon markets and carbon pricing instruments PMR Secretariat was requested to inform the PA on the scope and timeline of the analytical studies and resource allocation PA invited countries to share the progress and outcomes of the upstream policy work 1. Country-level analytical work 2. Common methodology and framework 3. International and national technical meetings and workshops 2
Scope of PMR Support The upstream analytical work consists of two streams of support: Additional and targeted support to countries to pursue design and implementation of carbon pricing instruments (e.g. carbon tax or emissions trading scheme) in response to recent domestic policy developments and outside the scope of the work under country s MRP Upstream Analytical Policy Support on Post-2020 Mitigation Scenarios which focuses on (1) Development of a common technical guidance on analytical approaches, technical methodologies and processes; (2) Country-specific support; and (3) National and international workshops, technical meetings and consultations. 3
Update on Targeted Country Support Chile Mexico Support work on carbon tax ToRs are in the process of finalization Support ETS for Energy Sector Pending legislation Scope of the work to be further defined 4
Update on Post-2020 Mitigation Scenarios Work: Development of Common Methodology Development of methodological framework ( checklist ) consisting of modeling tools, assumptions and variables needed for setting: Emission reference scenario Alternative emission scenario Package of policy instruments (including carbon pricing) for achieving mitigation targets in various scenarios Checklist will be developed in consultative and participatory manner The work is expected to benefit all the PMR countries and beyond 5
Update on Post-2020 Mitigation Scenarios Work: Countryspecific support (1) In-country consultations are still ongoing - scope of work is subject to further modification 1. Brazil Analyzing low-carbon power options for low-hydrology scenarios - Options for analysis include policy and market design to provide reliable back-up power including auctions for ancillary services, contingency funding schemes and carbon pricing. 6
Update on Post-2020 Mitigation Scenarios Work: Countryspecific support (2) 2. China Mapping and assessing existing policies and instruments that have major GHG abatement impact Reviewing and comparing the existing and ongoing studies on constructing China s GHG emissions scenarios for 2020, 2030 and 2050 Understanding methodologies used by other countries in setting their mitigation scenarios 7
Update on Post-2020 Mitigation Scenarios Work: Countryspecific support (3) 3. Colombia Review of Colombian Low Carbon Development Strategy emissions scenarios and strengthening robustness of quantitative assessment of sector mitigation options Exploring robust emission reduction pathway (including carbon pricing instruments) Building and running a combined top-down/bottomup energy-economy-environment models 8
Update on Post-2020 Mitigation Scenarios Work: Countryspecific support (4) 4. Costa Rica Mapping and assessment of GHG mitigation policies and instruments (including carbon market) Establishing mid- and long-term scenarios for economic growth and GHG emissions Recommendation on shaping national and sectoral abatement targets pathway to achieve carbon neutrality 9
Update on Post-2020 Mitigation Scenarios Work: Countryspecific support (5) 5. Peru Broadening the scope of the analysis of selected mitigation options Building emission-reduction pathways from GHG mitigation options Assessing macro-economic aspects of emission reduction pathways 10
Update on Post-2020 Mitigation Scenarios Work: Technical Consultations and Workshops Technical workshop on Approaches and Tools to Setting Mitigation Scenarios Held in Washington, DC on September 25-26, 2014 Brought together experts from a number of PMR Countries, other relevant institutions and the World Bank to exchange views and compare methodologies used in constructing post-2020 mitigation scenarios Current plans include a number of in-country and international workshops and consultations by June 2015 11
Considerations for Budget Allocation The allocation of the budget for country activities are based on the considerations of: (i) Scope of the proposed work (ii) Consultations with the relevant country on its budgetary needs (iii) The World Bank s experience with the cost for carrying out similar type of work 12
Budget Allocation and Timeline Activity Expected Completion Date Total Cost (US$) I. Development of checklist December 2014 Up to 80,000 II. Country support June/September 2015 Up to 1,050,000 Brazil June 2015 Up to 150,000 China June 2015 Up to 300,000 Colombia June 2015 Up to 250,000 Costa Rica June 2015 Up to 150,000 Peru September 2015 Up to 200,000 III. International and National Workshops and technical consultations June 2015 Up to 150,000 IV. WB country support cost N/A Up to 125,000 TOTAL Up to 1,405,000 13
Way forward Other PMR Implementing Countries may be interested in seeking support PMR Secretariat will provide regular updates on the work PMR Secretariat will report on the result of the studies 14
Thank You FOR MORE INFORMATION ON THE PARTNERSHIP FOR MARKET READINESS (PMR), PLEASE CONTACT: PMR SECRETARIAT PMRSECRETARIAT@WORLDBANK.ORG WWW.THEPMR.ORG 15